Tuesday, October 4, 2016

Typical Warrany Policy from builders - what's not covered and what is

Have you ever wondered if you new home warranty covers everything in your purchase by law? You may be surprised to learn that it does not.

  The book Working for Subs covers that subject in several chapters and in Appendix H shown below:

[below are excerpts from the book by this author:]

 Warranty Companies for the self-built home:

If you want to obtain a structural warranty for your foundation, roof, and walls there are several providers available, among these are.... [continued in book] ...

Some warranty companies will guarantee the foundation against settling for ten years. Others will give multi-year guarantees on mechanical, electrical, and other specific portions of the residence. You will have to consult with each of them in order to make a decision, and it would be prudent to do this during the planning stage before the design. Refer to Chapter 19 for more information about warranties.

Excerpt from Chap. 19:

 Completion and Warranty:

There is always something else you can do to a house. You will never finish working on one even after the day of substantial completion onward. Occasionally a buyer will have no final punch list, and the builder never hears from them during the warranty period. Others become obsessed with minute details, and give their builder extensive punch lists with many items not covered by warranties, like paint touch-ups or squeaky floors, waiting until the end of a year's period. The meticulous new homeowners perhaps are over reacting for fear of not being able to maintain the multiplicity of elements of construction that they do not understand without assistance from the builder after the warranty expires. We usually handled their non-warranty items without protesting as long as they were not too costly or too numerous.


If a contractor has built a house according to industry standards and current codes, using approved materials and methods, he is not held responsible for the thousands of items that cannot be foreseen, like nail pops in the drywall, or loosening fasteners in the subfloor that squeak. These things will occur on any project. The builder holds a final walk-through with the buyer in order to establish a point in time where these things become the buyer's responsibility and not the builder's. It is the responsibility of the builder to educate the homeowner as to the difference between these non-warrantied occurrences and those that are covered. Most contractors will, however, repair a lot of nuisance imperfections in the interest of good will, regardless of whether covered by warranty.

Excerpt from Appx. H:
WARRANTY POLICY & PROCEDURES
[The Builder - insert name] thanks you for purchasing one of our homes. All the contractors responsible for building your new home are professionals with a high degree of skill in their trade. Even though subcontractors may be very thorough, in a project with hundreds of thousands of pieces such as your home there will always be a few things which could have been done differently or more efficiently and some things which may not work properly at first.
There always are some items that require adjusting or repairing or redoing in any new house: Doors or windows may stick, squeak, or drag; water pipes could leak, especially hot water when expanding under first usage; small roof leaks may become visible under different rain and wind conditions. Many of these things are repairable during your warranty period (see HBW/BBHWA booklet).
[The Builder] wants you to enjoy and take pride in your new home. A great deal of attention to detail has gone into its construction. For these reasons we ask that our buyers work with us throughout the warranty period that begins upon the closing sale of the home.
We ask that new buyers keep a written list of items that are warranty items and a separate list of items that are not (paint chips, drywall dings, other cosmetic items, etc.). Except for emergency items, following closing each buyer should send the written list to our warranty contact, listed below. We will then make an appointment to come and assess the required work. A minimum charge may be due in advance for repair items which are not warranty related with an additional final charge when finished. Non-warranty work is billed hourly plus materials and a reasonable markup for overhead, administration, and profit.
It may be necessary to arrange for one of our subcontractors to handle particular items, in which case an appointment will be made which is convenient to the buyer and the subcontractor. We may request that each buyer and subcontractor communicate and make their own appointments to avoid confusion and repeated calling back and forth by using us as an intermediate. We do need to know when items have or have not been accomplished and ask the buy to notify our warranty contact about this.
Some repairs may take several trips, as patches or paint may need several coats or the source of the problem may not be readily obvious, such as roof leaks. We ask that buyers be patient and allow the repair men to enter their homes and let them know directly if you are not satisfied with their work before they leave the job as many subcontractors are difficult to reach and have odd schedules. It may be some time before a subcontractor will return to redo a job or return when not admitted to the home.
We ask that the homeowner be patient with the repair process and allow an extra amount of time for our busy subcontractor's and agents to arrange their schedules to accommodate your home. They serve many people with similar problems and must fit them in their time frames in an orderly manner. Some problems may require detective work on the part of the homeowner, as only the person living in the home can be there for example at odd hours or during rainstorms when the symptoms may occur. Write down times, dates, weather, conditions, and other observations that may give clues as to the cause of problems. If there is a water or gas leak turn off the main shut off valve if the pipe cannot otherwise be isolated. If there is an electrical problem it may be necessary for the homeowner to trip the main breaker.
The homeowner should handle EMERGENCIES promptly by first calling our warranty contact or us to request instructions on how to handle the problem and prevent further damage and to arrange for any needed repairs. Please leave a message if no one is immediately available, and the problem may worsen and cause further damage if left unrepaired. Next the homeowner should call the appropriate subcontractors from the list received at closing to come as soon as possible to control the emergency and make repairs. The homeowner should make reasonable emergency repairs only to the extent required to prevent further damage until we can be contacted. Only emergency reports will be accepted by telephone; all other reports must be in writing. Turn off water shut off main valve in case of leak and turn off main electrical breaker in panel in case of electrical problem or gas main shut off at meter if gas problem. These were demonstrated at the pre-closing walk-through inspection, and if you do not know how to control these, contact us right away before an urgent problem arises.
It is up to the homeowner to inform us of problems in a timely manner so that we may arrange a repair schedule agreeable to both himself/herself and the responsible subcontractor. If no written list is received, no work can be done. It is also the homeowner's responsibility to inform us whether the repairs were successful or unsuccessful after the repairman leaves. If we do not hear from the homeowner we must assume that they are satisfied with the repairs made. In many cases we do not know the schedule arranged between subcontractors and homeowners or whether they have agreed that the work is complete, it is therefore necessary for the homeowner to let us know when the work is completed.
After the initial written warranty repair list (if any) has been completed, the homeowner should begin keeping another warranty repair list of items that occur after the first list has been serviced. This next list should be mailed to our warranty contact before six months following closing and will be handled promptly. At that time a final warranty repair list (if any) should be kept until two weeks prior to the end of the warranty period (see New Home Warranty for duration) at which time this list should be mailed to our warranty contact. It will be handled similarly to any previous lists.
If there is a question as to what is covered under the New Home Warranty and what is not the warranty document itself should be consulted. This policy and procedure guide is merely a guideline and does not replace the New Home Warranty document received at closing. The homeowner is urged to communicate with the builder anytime there is something in question. [The Builder] is always interested in having satisfied customers and wants people to be satisfied with their new home. We are very conscientious about our work and will do everything reasonably possible to solve a problem with the cooperation of the homeowner. It is never appropriate to become angry or irritated over a problem. We are eager to discuss any detail of the warranty as long as the homeowner is willing to communicate.
[The Builder] looks forward to assisting you throughout the warranty period and wishes you a carefree and happy home.

Builder's warranty contact: --------------------------------------------------------
[Agent & telephone/cell phone number]
See: New Home Warranty and closing documents for mailing and other contact information.
________________________________

date: [month date, year]

No comments:

Post a Comment